Software developers often do not think about acquiring insurance specific to technology. It is a common misconception that cyber insurance and other forms of liability insurance will cover any liabilities that a software developer may be exposed to; however, this is not always true.
In fact, software developers face unique risks and liabilities that may not be covered under non technology-specific policies, exposing developers to danger and financial risk.
Top Insurance Technology Policies To Protect Your Business
Here are the top reasons why software developers need technology insurance and the policies that can protect your business:
Cyber Liability Insurance
Often sold as standalone plans that offer insufficient coverage, cyber liability insurance is, nonetheless, of critical importance to software developers. A company’s cyber liability needs are unique, as other businesses will be using their software.
All businesses that store data electronically need cyber liability insurance to protect them in the event of a data breach. Software developers are actually at a greater risk because their software is being used by others. Most businesses only need to worry about potential data breaches in their own systems. However, developers may be held liable for breaches in their customers’ networks.
If your software is being used by five different companies, you have a risk of data breach five times higher than most businesses. Cyber Liability insurance becomes even more critical in these situations. It is important to make sure that you are covered in the event of a data breach, especially since there is such a high risk.
General Liability Insurance
If a company owns or uses a building, it is essential to acquire general liability insurance. Cyber packages often do not include this, and it is a necessary insurance product for any business that has physical property. Anyone who is injured on the property, no matter how the injury occurs, can file a lawsuit. Whether their claim is successful or not, you may be left with legal bills and reputational damage. General liability insurance makes certain that, if a lawsuit is filed, your business will not be subject to financial distress.
Crime Insurance
There are many ways in which crime insurance can protect your business. Employee dishonesty — including theft and embezzlement — can have a huge impact on your business. Crime insurance provides coverage in such an event.
In fact, crime insurance covers your business in almost any event involving criminal activity, including computer fraud, funds transfer fraud, counterfeit money, or even kidnapping.
Errors & Omissions Insurance
Errors and omissions coverage protects companies from financial loss in the event of an error or omission while rendering services or delivering product to a customer. If there is a problem with company software that impacts customers, this coverage protects you.
Software is complex, and even the best developers miss an error every now and then. Usually, it is of little consequence and can be easily fixed, but there are instances when an error or omission on your part can lead to major problems for a customer. Errors and omissions coverage protects against such issues.
Problems with software can cause serious trouble. If it fails to work or if a project is not completed on time, a business may be sued for breach of contract. Any of these situations could end up being very costly. Errors and omissions coverage provides financial protection and ensures that a company will be able to recover.
Technology Insurance Tailored To Your Needs
The most important reason to buy Technology Insurance is to ensure you have protection that is specifically tailored to your risks and liabilities. Cyber insurance plans for an online store will not provide the same kind of coverage as a cyber insurance plan for a software developer.
Your business has all the same general insurance needs as any other business: general liability, product liability, workers’ compensation, crime, and more. It also has needs that are specific to software developers, like comprehensive cyber liability protection. An insurance plan needs to cover all of these things.
More often than not, other types of insurance will not include all of these coverages in one package deal. Even most of the cyber liability plans on the market are not necessarily designed for a software developer’s specific needs. Technology insurance will cover all of your needs and takes into account the specific liabilities that need to be covered.
Acquiring Technology Insurance For Your Company
If your software development company is not yet insured, do not wait to acquire protection. If you have a policy that is not specific to technology, you may want to look closely at what is covered. You may find that you are not as protected as you thought you were.
If you would like to speak to an insurance broker about technology insurance for your software development business, contact MFE Insurance. We tailor our technology insurance plans to your exact needs, so you can rest assured that you are covered in all conceivable situations.